Why Bitcoin Price Plunged to $30K? Altcoins Suffer Losses Amid Crypto market Bloodbath

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Bitcoin price fell to lows of $30,000 on Wednesday, confirming the largest price decline so far in this present bull run. Coming after a week of successive dips, Wednesday’s price plunge puts Bitcoin at its lowest level since early February and nearly 53% below its all-time highs of $64,899.

Bitcoin price has seen four corrections from new price highs so far in 2021, out of which this recent 40% is the biggest. With the plunge beneath $40,000 on May 19th, Bitcoin thus traded nearly at the same price as at the period of Tesla’s $1.5 billion buy-ins. This wipes out 100% of the entirety of the carmaker’s Bitcoin profits.

The majority of Altcoins also suffered remarkable losses except for selected tokens such as Polygon (MATIC, +12.75% ), SUSHI (+4.23%), ARK (+25.42%) trading in green at the time of writing. The majority of Altcoins were seen posting double-digit losses, such as Binance Coin (-16.58%), Internet Computer (-26.17%), SHIBA INU (-22.42%).

Why Bitcoin Plunged Beneath

High Bitcoin inflows to centralized exchanges have prompted predictions of further bearish waves in the last few days. Justin Chu, senior trader at Wave Financial noted that Bitcoin’s weak technical structure coupled with bearish fundamentals from high inflows of bitcoin to exchanges may suggest that the correction was bound to occur.

Fear could also be pointed to as one of the factors that contributed to the huge price drop. Lex Moskovoski, CIO at Moskovoski Capital, noticed the pervading fear in the space stating that:

”Bitcoin SOPR is lowest since March 2020. People on average are selling at loss, Fear.”

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